Mdr

DFS sought comments from banks, RBI and NPCI on the existing GST slab of Rs 40 lakh for shopkeepers, whether it should be raised, and by how much, sources said

Payment fintechs are getting squeezed as banks add charges for UPI merchant transactions

The bank charges are limited to those accounts where the PAs use the banks for merchant acquisition. Since the fees is 0.02%, PAs are likely to absorb the cost and are not expected to pass these to merchants immediately

The real cost of UPI, missing revenue model, and a case for bringing back MDR

To compensate for the loss of income from MDR, the government proposed a subsidy for the industry. The subsidy aims to compensate for the opportunity cost incurred by financial institutions when the government eliminated the MDR, rather than directly covering their expenses.

Fissures appear in Payments Council on letter to PM Modi on MDR without consultation

Some fintechs are miffed with Payments Council of India after it shot off a letter to PM on MDR without consultation. Such an aggressive public posturing on MDR could be counter productive, they said

Lower UPI subsidy an indication that MDR on UPI is around the corner, say bankers

With the subsidy limited to small merchants, the government is shifting the subsidy burden to large merchants

Fintechs explore charging merchants for UPI in talks with RBI

Merchant payments now account for around 62 percent of all UPI transactions, up from 40 percent in January 2022

When Fintechs met FM: No mention of Paytm, Nirmala Sitharaman lends a patient ear & more

One of the main outcomes of the meet was that there will be monthly calls between the regulator and fintechs wherein, the latter can seek clarity on any regulations and get feedback.

Rupay credit card payments through UPI hits the MDR speedbreaker

A large number of small and large merchants have requested their banks to disable payments via Rupay credit cards on UPI as they are often forced to pay higher MDR than on other credit card transactions.

MC Explainer: Can money saved by banks on lower ATM withdrawals compensate for the lack of MDR on UPI?

Some fintech executives claim banks save a lot of money on operating ATMs since their use has fallen as customers increasingly adopt digital payments.

Remove withdrawal restrictions on BSBD accounts for digital payments

s much as Rs 5,000 crore can be raised per annum through a 0.3 per cent fee on payments through all electronic modes at e-commerce platforms, which could be used to maintain and strengthen the UPI infrastructure.

PhonePe CEO Sameer Nigam makes renewed pitch for MDR, warns there is no path to recovery otherwise

Nigam pointed out that when payment modes are made free of cost there is an underlying assumption that companies involved in these businesses will have alternate sources of revenue. However, that may be possible for banks, but not startups, he added.

MC Explains| What is MDR and why the Centre clarified its stance on UPI

A question being widely debated is whether MDR should be charged for UPI transactions.

Ashneer Grover weighs in on linking credit card with UPI. 'Great move by RBI but...'

Ashneer Grover echoed sentiments regarding merchant discount rate (MDR). "Merchants will not pay MDR," the Shark Tank India judge and former BharatPe co-founder said.

Restore MDR on UPI and RuPay transactions, banks, payment firms ask Centre: Report

The proposal includes “discounted MDR on RuPay to make it competitive with Visa and Mastercard” bank cards, and flat, “slab-based MDR on UPI transactions.”

Payments industry reiterates demand for a stable MDR regime

For digital payments to grow, India needed to reward innovation and risk-taking abilities, they say.

RBI’s new payment aggregators’ norms: Enabling innovation and customised services for merchants

The new norms not only adds flexibility and control but also creates scope for innovation.

In the Aftermath of Zero MDR: Exploring new revenue opportunities for Payment Service Providers

It is hoped that the requests of the NPCI, IBA, PCI and the like will bear fruit, however indications so far are that zero MDR is here to stay.

Zero MDR may be good for digital adoption but at what cost?

No income from transactions could make businesses unviable for key stakeholders, which could lead to investors shying away.

Scrapping of MDR to see fewer RuPay cards: Bankers

With banks forced to bear processing charges on RuPay cards, they were more likely to issue Mastercard and Visa cards

Finance Ministry implores banks to boost RuPay, UPI infra: Report

Non-complaint businesses would face a daily penalty of Rs 5,000.

Banks yet to pay back MDR on small digital transactions: PCI

"None of the banks have reimbursed for transactions processed from 1st January 2018 till date," PCI chairman Vishwas Patel said in a statement.

Govt to reimburse MDR on transactions up to Rs 2,000

MDR is charged on payments made to merchants through BHIM UPI platform and AePS (Aadhaar enabled Payment System).

Why digital payment cos disapprove slashing debit card transaction fee

Such companies feel the central bank's draft proposal seeking changes to the fee regime on debit cards will kill innovation in the payments business.

Digital payments get a boost: Oilcos to bear MDR on fuel buying

The impasse over the payment of merchant discount rate (MDR) charges on fuel purchases via debit cards seems to have reached a conclusion with oil retailing companies - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp - agreeing to pay the charges, at least until March 31, reports the Mint today.